The Hershey Company reported third quarter 2026 results that exceeded analyst estimates on both the top and bottom lines, driven by significant price realization and margin recovery following prior-year cocoa-related compression. While consolidated net sales rose 3%, organic volumes fell 10% as consumers reacted to higher price points and the company optimized its international portfolio. Management raised its full-year 2026 adjusted EPS growth outlook to 36%–38.5%.
Key Highlights
- Organic constant currency net sales increased 0.8%, with an 11-point benefit from pricing largely offset by a 10-point decline in volume and mix.
- Adjusted gross margin expanded 1,090 basis points to 42.7%, fueled by price realization, productivity gains, and a favorable comparison to the prior year's commodity headwinds.
- North America Confectionery segment income surged 66.2% to $949.7 million, though the company noted retail market share declines in candy, mint, and gum categories.
- North America Salty Snacks sales grew 22.3%, primarily driven by a 20-percentage-point contribution from the LesserEvil acquisition.